The Brief Writer

Federal judge Colleen McMahon handed down a severe sentence to Samuel Israel III, co-founder of the hedge fund, the Bayou Group, for his role in a scheme to cheat investors.  The judge sentenced Israel to 20 years in prison for a fraudulent scheme involving more than $400 million.  The sentence was among the longest handed down in a white-collar case though Israel had pleaded guilty.

In sentencing Israel to 20 years, Judge McMahon noted that the Federal Sentencing Guidelines advised a sentence of more than 30 years in prison.  The judge cited Israel's cooperation with prosecutors as one of the factors mitigating his sentence.

Daniel Marquez, the other co-founder, was found to be less culpable and was sentence to just four years and three months.

In his investigation of several church ministries, Charles Grassley sent a second request to Kenneth Copeland Ministries (KCM), asking the church to provide the information that he initially requested. On March 31st, KCM responded to the senator which you may view here.

The senator's request for information and KCM's response reflect the inherent constitutional tension in the senator's public investigation of certain churches. KCM, as a church, and its members, enjoy First Amendment protections such as freedom of religion, association, and assembly. Government intrusions on these freedoms are often rebuffed under the Supreme Court's First Amendment jurisprudence and strict scrutiny analysis. On the other hand, KCM enjoys tax-exemption which is deemed a privilege and not a right and is subject to some kind of government oversight.

KCM's letter indicates that the church agreed to produce more information to the senator's office if the senator would agree to confidentiality in line with section 6103 of the Internal Revenue Code. KCM is correct in that churches enjoy certain constitutional protections that other non-profits do not and it appears that the church is attempting to maintain those protections while providing substantive responses. KCM's letter indicates that the senator's office would not agree to those kinds of confidentiality provisions which raises serious questions (given the facts we have).

KCM also raises the issue that the senator's investigation of the church's financial affairs presents the potential for government entanglement or intrusion into the church's and church members' religious liberties. This is a fascinating legal issue because there are no allegations of wrongdoing, such as fraud, embezzlement, or theft. In light of the senator's office declination of section 6103's confidentiality provisions, KCM's letter raises a substantive constitutional question: In the absence of criminal wrongdoing, how is this public investigation not a government intrusion into the church's theology and religious practice?

[In announcing the investigation, the senator questioned Joyce Meyer's purchase of a $23,000 "commode" and remarked how money was being flushed down the toilet. Joyce Meyer's "commode" is, in fact, an antique dresser which was a gift to the ministry. The senator's comments could be viewed as a statement against the particular theologies and religious practices of the ministries/churches. See CNN video.]